This story may be different, however. This from Representative Kanjorski on C-span in January.
"I was there when the Secretary and the Chairman of the Federal Reserve came those days and talked to members of Congress about what was going on. It was about Sept. 15. Here's the facts, we don't even talk about these things.
On Thursday at about 11 o'clock in the morning, the Federal Reserve noticed a tremendous drawdown of money market accounts in the United States to the tune of $550 billion, as being drawn out in the matter of an hour or two.
The Treasury opened up its window to help. It pumped $105 billion into the system and quickly realized that they could not stem the tide. We were having an electronic run on the banks. They decided to close the operation, close down the money accounts and announce a guarantee of $250,000 per account so there wouldn't be further panic out there, and that's what actually happened.
So, who made a run on the money markets, and what was their purpose? This didn't happen out of the blue. It wasn't that investors got cold feet, because this wasn't even public news until after the fact, and even then hardly disseminated very widely.
Diana West reports on this further at Townhall.com
A friend of mine has a quote of Jefferson's on his Facebook wall. It says:
I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.
Timely, isn't it?
Watch Kanjorski's statement below.